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Welfare receipt misreporting in survey data and its consequences for state dependence estimates: new insights from linked administrative and survey data

Author

Listed:
  • Bruckmeier, Kerstin

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Hohmeyer, Katrin

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Schwarz, Stefan

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"In many advanced welfare states, welfare recipients often receive benefits for long periods. This persistence of welfare receipt can be caused by two distinct mechanisms: genuine or spurious state dependence. Knowledge of which of the two mechanisms drives the observed state dependence is important because the policy implications are different. Most of the empirical evidence on state dependence relies on survey data. However, survey data on welfare receipt are subject to substantial measurement error (i.e., misreporting of welfare benefit receipt), which may also bias state dependence estimates. This paper uses rich linked survey and administrative data to measure the effect of misreporting in the survey data on the estimated state dependence in welfare receipt in Germany. We find a rate of underreporting of welfare benefits of 8.6%. Recipients with relatively good labour market chances tend to underreport benefits more frequently. Overreporting benefits is less pronounced with a rate of 1.6%. Within the survey data, we observe more transitions into and out of the welfare system. However, our estimates of state dependence in welfare receipt based on a dynamic random effects model reveal that the effect of misreporting on estimated state dependence is small, even when we distinguish between working and non-working recipients in the model." (Author's abstract, © Springer-Verlag) ((en))

Suggested Citation

  • Bruckmeier, Kerstin & Hohmeyer, Katrin & Schwarz, Stefan, 2018. "Welfare receipt misreporting in survey data and its consequences for state dependence estimates: new insights from linked administrative and survey data," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 52(1), pages 1-16.
    • Handle: RePEc:iab:iabjlr:v:52:p:art.16
    DOI: 10.1186/s12651-018-0250-z
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    References listed on IDEAS

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    Cited by:

    1. Serena Pattaro & Nick Bailey & Chris Dibben, 2020. "Using Linked Longitudinal Administrative Data to Identify Social Disadvantage," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 865-895, February.
    2. Berg, Marco & Cramer, Ralph & Dickmann, Christian & Gilberg, Reiner & Jesske, Birgit & Kleudgen, Martin & Beste, Jonas & Dummert, Sandra & Frodermann, Corinna & Schwarz, Stefan & Trappmann, Mark & Bäh, 2020. "Codebook and documentation of the Panel Study 'Labour Market and Social Security' (PASS) : Datenreport Wave 12," FDZ Datenreport. Documentation on Labour Market Data 201909_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. repec:iab:iabfda:202012(de is not listed on IDEAS
    4. Mosthaf, Alexander & Schank, Thorsten & Schwarz, Stefan, 2021. "Do Supplementary Jobs for Welfare Recipients Increase the Chance of Welfare Exit? Evidence from Germany," IZA Discussion Papers 14268, Institute of Labor Economics (IZA).
    5. repec:iab:iabfda:202012(en is not listed on IDEAS
    6. Berg, Marco & Cramer, Ralph & Dickmann, Christian & Gilberg, Reiner & Jesske, Birgit & Kleudgen, Martin & Beste, Jonas & Dummert, Sandra & Frodermann, Corinna & Schwarz, Stefan & Trappmann, Mark & Bäh, 2021. "Codebook and Documentation of the Panel Study "Labour Market and Social Security" (PASS) : Datenreport Wave 13," FDZ Datenreport. Documentation on Labour Market Data 202012_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Berg, Marco & Cramer, Ralph & Dickmann, Christian & Gilberg, Reiner & Jesske, Birgit & Kleudgen, Martin & Beste, Jonas & Dummert, Sandra & Frodermann, Corinna & Schwarz, Stefan & Trappmann, Mark & Bäh, 2020. "Codebuch und Dokumentation des Panel 'Arbeitsmarkt und soziale Sicherung' (PASS) : Datenreport Welle 13," FDZ Datenreport. Documentation on Labour Market Data 202012_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Berg, Marco & Cramer, Ralph & Dickmann, Christian & Gilberg, Reiner & Jesske, Birgit & Kleudgen, Martin & Beste, Jonas & Dummert, Sandra & Frodermann, Corinna & Schwarz, Stefan & Trappmann, Mark & Bäh, 2019. "Codebuch und Dokumentation des Panel 'Arbeitsmarkt und soziale Sicherung' (PASS) : Datenreport Welle 12," FDZ Datenreport. Documentation on Labour Market Data 201909_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    10. repec:iab:iabfda:201909(de is not listed on IDEAS

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; Aufstocker ; Datenqualität ; Erwerbstätige ; Fehler ; IAB-Leistungsempfängerhistorik ; Non Response ; Integrierte Erwerbsbiografien ; Leistungsbezug ; Persistenz ; Antwortverhalten ; sozialer Status ; Arbeitslose ; Arbeitslosengeld II ; Arbeitslosengeld II-Empfänger ; Zu- und Abgänge ; IAB-Haushaltspanel;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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